The Commerce Department on Thursday rolled out a narrow tariff break for Canadian and Mexican steel and aluminum used to make U.S. cars, trucks and parts — potentially cutting rates from 50 percent to 25 percent on qualifying shipments.
The U.S. government notice, published Thursday in the Federal Register, implements a provision in President Donald Trump’s October 2025 proclamation on tariffs for medium- and heavy-duty trucks, parts, and buses, issued under Section 232 of the Trade Expansion Act of 1962, which created a pathway for metals used in those supply chains to receive a reduced tariff rate.
The policy will most likely affect large automakers and their suppliers, including the Big Three — General Motors, Ford Motor Company and Stellantis — which rely heavily on steel and aluminum inputs sourced across the North American supply chain.
The Big Three are still reviewing the notice, according to Matt Blunt, the president of the American Automotive Policy Council, a trade association that represents those automakers in Washington.
